About Charitable Gift Annuities
If you’re looking for a way to maintain your current lifestyle, increase your financial security, and lower your taxes, consider creating a charitable gift annuity. You will receive fixed annual payments for as long as you live.
If you are under 60, you may want to consider a Deferred Charitable Gift Annuity, where payouts start after you hit a certain age.
Benefits
- Receive an immediate income tax deduction for a portion of your gift
- Annuity payments are guaranteed for life, backed by a reserve and the assets of Middlebury
- Annuity payments are partially tax free, making them more valuable than fully taxable income of the same size
How it works
- Set up an annuity contract with Middlebury and transfer cash or securities as outlined in the agreement.
- Middlebury invests the assets and pay you (or up to two annuitants) fixed income for life, with the amount depending on the size of the transfer and the age of the annuitants.
- The remaining funds pass to Middlebury when the contract ends, creating a meaningful impact.
Charitable Rollover Gift Annuity
Under a law that became effective in 2023, some donors can make a QCD in exchange for a charitable gift annuity. There are some rules and limitations:
- You can exercise this option only once during your lifetime.
- There is an aggregate limit of $55,000 for 2026.
- The entire payment you receive from your charitable gift annuity will be subject to income tax.
- You can include your spouse as a recipient of the annuity payment.
- There is no income tax deduction for this contribution, although there is no tax on the QCD either.
Learn more about Charitable Gift Annuities and Charitable Rollover Gift Annuities
Our gift planning team is available to answer any questions for you. Or, you can consult with a qualified estate planning attorney and a financial advisor to determine if this is the right option for you.
We’re here to help you meet your goals!
Our team would be happy to speak with you in confidence about your giving goals, with no obligation.
Name
Title :Office of Advancement
152 Maple Street, Suite 101, Middlebury, VT 05753
Phone: 888-910-1235
Email: giftplanning@middlebury.edu
If you have already included Middlebury in your estate plan, please let us know
More ways to make an impact
Gifts in a will or trust
Donations in your will or trust are (by far) the most popular type of planned gift. Learn more, or get help starting your will (for free!).
Beneficiary designations
Gifting assets not covered by your will — like 401(k) or IRA accounts — may help your heirs avoid unwanted taxes, even if you’re below the estate tax threshold.
Popular tax-smart gifts
Many people are increasingly choosing to give non-cash assets, so they can have a bigger impact at less cost to them.